Tech workers increase, rents don’t. Go figure

The San Jose Mercury News undercut a key myth of local progressives--that high tech workers drive up rents--by reporting that a recent *increase* in tech workers in Silicon Valley has in fact resulted in a *decrease* in average rents in the area.

Two front pages stories on August 17 tell the story. The lead story by George Avalos notes that the South Bay added 4,000 jobs in July, "The tech industry muscled up for a robust July," the article states. High-tech companies accounted for 2,000 new jobs in San Francisco-San Mateo counties, and 1,000 new jobs in Santa Clara County. The article references the State Employment Development Department for its statistics.

Just below the fold, an Emily DeRuy article notes that, at the same time, rents for 41 out of the 44 cities in the Bay Area region, either stalled (rose less than 1%) or actually dropped. This is consistent with a stalling of rent increases across the country (just 0.2% increase) even as the country realizes effectively full employment. The statewide unemployment rate is 4.1%, matching the all-time lowest rate ever recorded in California.

The data effectively disproves repeated progressive talking points that tech workers drive up rents and displace lower-earning residents. The data suggests that the economic realities driving real estate prices and gentrification and displacement are much more complex and require more thoughtful consideration.